Econ chapter 28
not in the labor force category
those who fit neither of the first two categories ex- full time student or homemaker
employed part time for economic reasons
those who want and are available for full time work but have had to settle for a part time schedule
long run problem and short run problem
2 categories of unemployment
unemployment insurance
a government program that partially protects workers' incomes when they become unemployed
union
a worker association that bargains w employers over wage, benefits, and working conditions
efficiency wages
above-equilibrium wages paid by firms to increase worker productivity
public training programs
aim to ease the transition of workers from declining to growing industries and to help disadvantaged groups escape poverty
sectoral shifts
changes in the composition of demand among industries or regions
National Labor Relations Board
enforces workers' right to unionize
conspiracy in restraint of trade
firms that sell a common product agree to set and high price for that product
right to work laws
give workers in a unionized firm the right to choose whether to join the union
10 percent
how many US manufacturing jobs are destroyed every year?
3 percent
how many workers leave their jobs in a typical month?
unemployed category
includes those who were not employed, were available for work, and had tried to find employment during the previous 4 weeks
employed category
includes those who worked as paid employees, worked in their own business, or worked as unpaid workers in a family member's business
discouraged workers
individuals who would like to work but have given up looking for a job
labor force participation rate
labor force/adult population x 100
kramer lifestyle
men not working
reasons for an above-equilibrium wage
minimum wage laws unions efficiency wages
true
most people who become unemployed will soon find jobs
labor force
number of employed + number of unemployed
unemployment rate
number of unemployed/labor force x 100
frictional unemployment
often the result of changes in the demand for labor amount different firms
marginally attached workers
persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past
Wagner Act of 1935
prevents employers from interfering when workers try to organize unions and requires employers to bargain with unions in good faith
false
t or f: all unemployment ends with the job seeker finding a job
true
t or f: almost half of all spells on unemployment end when the employed person leaves the labor force
true
t or f: better paid workers are more productive because they eat a better diet and are healthier
true
t or f: employment can rise in one region while it falls in another
true
t or f: frictional unemployment is inevitable
true
t or f: high wages make workers want to keep their jobs so they work harder
true
t or f: higher wages lead to better quality workers
true
t or f: if wage is kept above the equilibrium level the result is unemployment
false
t or f: most job search takes place WITH the intervention of the government
true
t or f: most spells of unemployment are SHORT
false
t or f: most spells of unemployment observed at any given time is SHORT term
false
t or f: newly hired workers are MORE productive than experienced workers
true
t or f: the more a firm pays its workers the less often its workers will choose to leave
true
t or f: the unemployment rate never falls to zero
false
t or f: the worker health theory is relevant in the US and other rich countries
false
t or f: unemployment insurance DECREASES the amount of unemployment
false
t or f: unions workers earn 10 to 20 percent LESS than non union workers
cyclical unemployment
the deviation of unemployment from its natural rate
natural rate of unemployment
the normal rate of unemployment around which the unemployment rate fluctuates
strike
the organized withdrawal of labor from a firm by a union
collective bargaining
the process by which unions and firms agree on the terms of employment
job search
the process of matching workers w appropriate jobs
cyclical unemployment
the year to year fluctuations in unemployment around its natural rate
frictional unemployment
unemployment that occurs when people take time to find a job that is best suit their tastes and skills
structural unemployment
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one quantity of labor supplied exceeds the quantity demanded
